Mumbai (PTI): Shares of private air carrier SpiceJet on Friday surged over seven per cent on the Bombay Stock Exchange, amid reports that it is close to finalising a share swap deal with Vijay Mallya-led Kingfisher Airlines.

The scrip on Friday touched an intra-day high of Rs 26.85, up over 15 per cent on the BSE, while over 21.63 lakh equity shares of the company changed hands at the bourse.

SpiceJet shares finally settled at Rs 25, up 7.76 per cent on the BSE.

According to media reports the share swap is expected to be in the ratio of 1:3, where SpiceJet shareholders would get one share of the merged entity, between the company and Kingfisher Airlines, for every three SpiceJet shares owned by them.

The deal, if it is finally clinched, would give Kingfisher promoter Vijay Mallya access to a formidable route network, making it the largest aviation player in the country with nearly 40 per cent market share.

The SpiceJet scrip has witnessed a drop of over 70 per cent so far from Rs 87 levels at the beginning of the year.